Auditor Independence Threats and Factors Affecting Independence
Gana Kafiya Wakil1, Mohd Norfian Alifiah2, Alhaji Ali Tijjani3
1Gana Kafiya Wakil, Department of Accounting and Finance, Universiti Teknologi Malaysia.
2Mohd Norfian Alifiah, Department of Accounting and Finance, Universiti Teknologi Malaysia.
3Alhaji Ali Tijjani, Department of Accounting and Finance, Universiti Teknologi Malaysia.
Manuscript received on 28 November 2019 | Revised Manuscript received on 04 December 2019 | Manuscript Published on 10 December 2019 | PP: 917-923 | Volume-8 Issue-3S2 October 2019 | Retrieval Number: C12531083S219/2019©BEIESP | DOI: 10.35940/ijrte.C1253.1083S219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In various professional standards and regulations, the accounting profession has generally described independence as a lack of specific interests and relationships that are presumed to affect auditor objectivity. An auditor must be watchful to any harmful impacts on his planning, investigation, or reporting to preserve independence under the numerous pressures from clients. This article reviews auditor independence literature and factors affecting independence in order to determine the effects of the factors on independence. The method employed for the research is a desk system of research design, in which data were collected through secondary sources such as journals, books and internet materials. The finding of the review indicates that the most mentioned threats to auditor independence are non-audit services, audit tenure, auditor-client relationship and client importance. Independence continues to be a problem when it comes to finding out how accurate and credible investor financial statements are. The leading factor of the independence of the auditor was not evident, but other researchers ranked them based on importance because of their belief that they chose to experiment.
Keywords: Agency theory, Audit, Auditor Independence, Threats.
Scope of the Article: e-governance, e-Commerce, e-business, e-Learning